The common currency Euro remained close to a 2-year trough as an impending vote in the Greek parliament could be the trigger point for the latest concerns over Greece’s future. The Greek Parliament has, twice now, failed to elect a president, and if it fails once again a snap election could mean that Syriza party, which has long been against the bailout plan which calls for significantly austere demands, could take power. Analysts say that if this vote fails to elect a president, the reaction toward the Euro would be decidedly negative.
As reported at 10:34 am (GMT) in London, the EUR/USD was holding at $1.2184, but close to the recently struck 2-year trough at $1.2165. Trading in the Euro, and indeed most currency pairs, is thin in this the last week of trading for 2014.
Krona Gets Respite
In Sweden, the Swedish Krona get some relief after a behind the scenes deal that means the cancellation of an early election as well as the sidelining of the Sweden Democrats which holds an anti-immigration stance. The USD/SEK was trading higher at 7.8497, a gain of 0.24% while the EUR/SEK was trading at 9.5745. In Switzerland, recent speculation that the Swiss National Bank had allowed the EUR/CHF to trade beyond the cap (set at 1.20 Swiss Francs) was quashed by the central bank. The EUR/CHF is currently higher at 1.2027, with the cap of 1.20 remaining intact.